Unit 4 Review - Supply

Identify the correct determinant of supply:

Example: If the cost of electricity used to power an automotive factories falls, the supply of cars in the market increases

• Cost of production/resources

• Number of sellers

• Change in expectations

• Change in technology

Identify the correct determinant of supply.

Example: If the government requires factories to reduce pollution, complying will initially increase costs of production in the market and reduce supply.

• Government regulation

• Cost of resources

• Worker productivity/motivation

• Change in technology

Identify the correct determinant of supply.
Example: As the demand for DVDs decreased due to consumer preference for streaming movies, the market price for DVDs fell. This lower market price caused sellers to leave the DVD market and supply decreased. 

• Government regulation
• Change in number of sellers
• Change in income
• Change in expectations

Identify the correct determinant of supply.
Example: If airlines expect prices for airline tickets to fall in September when families are less likely to travel due the school calendar, they will supply more during the summer months when they can charge higher fares.

• Change in income
• Change in number of sellers
• Expectations
• Change in technology

Identify the correct determinant of supply.
Examples: When auto manufacturer were able to implement robotics on the production line, automobiles were produced more quickly and at a smaller cost per unit. This allowed the industry to supply more cars.

• Government regulations
• Expectations
• Number of sellers
• Change in technology

Labor costs are rising through the roof! Minimum wages are now at $25 an hour. This means even the basic item will need to cost more to keep up with rising costs. What determinant of supply does this most relate to?

• Change in technology

• Change in number of sellers

• Change in cost of production/ resources

• Consumer taste/ preference

A brand new machine cooks, cleans, and never messes up a fast food order. This means we can sell more fast food than ever before, leading to producers cutting cost of fast food. Which supply factor does this most likely relate to?

• Change in Technology

• Substitute Goods

• Change in Expectations

• Taxes and Subsidies

The price of milk has recently increased. As a result, what will happen to the supply of icecream at Marble Slab Creamery?

• Increase

• Decrease

The Law of Supply states that when the price of a good INCREASES, quantity supplied (Qs)

• Increases

• Decreases

Which of the following is NOT one of the determinants of supply?

• Change in number of sellers

• Change in income

• Producer expectations

• Worker productivity/ motivation